If consumption changes because of a change in the price level, then the
A) economy moves from one point on an AD curve to another point on the same curve.
B) AD curve shifts.
C) economy moves from one point on a SRAS curve to another point on the same curve.
D) SRAS curve shifts.
E) none of the above
A
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According to the quantity theory of money, if velocity of money is constant, a 5 percent increase in money supply will lead to a 0.25 percent increase in nominal GDP
a. True b. False Indicate whether the statement is true or false
If there is initially a federal budget deficit, and government purchases and transfer payments both rise:
a. AD increases and the budget deficit increases. b. AD increases and the budget deficit decreases. c. AD decreases and the budget deficit increases. d. AD decreases and the budget deficit decreases.
A nation with a trade surplus will necessarily have saving that is greater than domestic investment
a. True b. False Indicate whether the statement is true or false
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A. Medicare. B. Supplemental Security Income (SSI). C. Medicaid. D. TANF.